On Our Radar

On Our Radar

China's Fiscal Spending Slowed Sharply in August

BEIJING – China's fiscal spending slowed sharply in August, as the government had front-loaded expenditure earlier this year, resulting in stronger-than-expected economic growth in the first half of the year.

Continue Reading Below

China's fiscal spending rose 2.9% compared with a year ago to 1.47 trillion yuan ($226.9 billion) in August, the Ministry of Finance said on Monday. The growth was below the 5.4% pace in July and much lower than the 15.8% growth recorded in the first half of the year.

The ministry said the slower growth was due to front-loaded spending earlier this year. The slower spending by the government is expected to weigh on growth in months ahead, economists say.

China's fiscal revenue increased 7.2% compared with a year ago to 1.07 trillion yuan in August, also below the 11.1% increase in July.